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General Assembly Substitute Bill No. 6867
January Session, 2023
AN ACT CONCERNING COMPETITIVE NEGOTIATION FOR CERTAIN
STATE CONTRACTS AND OTHER PROCUREMENT PRACTICES. .
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. Section 4-212 of the general statutes is repealed and the 1
following is substituted in lieu thereof (Effective July 1, 2023): 2
As used in [sections 4-212] this section and sections 4-213 to 4-219, 3
inclusive, as amended by this act: 4
(1) "Competitive negotiation" means (A) a procedure for contracting 5
for services in which [(A)] proposals are solicited from qualified 6
persons, firms or corporations by a request for proposals, regardless of 7
the number of responses, and [(B)] changes may be negotiated in 8
proposals and prices after being submitted, or (B) any other open and 9
fair process in which all qualified persons, firms or corporations have 10
an equal opportunity to be selected to provide services. 11
(2) "Personal service contractor" means any person, firm or 12
corporation not employed by the state, who is hired by a state agency 13
for a fee to provide services to the agency. The term "personal service 14
contractor" [shall] does not include (A) a person, firm or corporation 15
providing "contractual services", as defined in section 4a-50, as 16
amended by this act, to the state, (B) a "consultant", as defined in 17
section 4b-55, (C) a "consultant", as defined in section 13b-20b, (D) an 18
agency of the federal government, of the state or of a political 19 Substitute Bill No. 6867
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subdivision of the state, [or] (E) a person, firm or corporation 20
providing consultant services for information and telecommunications 21
systems authorized under subdivision (3) of subsection (b) of section 22
4d-2, or (F) a person, firm or corporation providing transportation 23
services under a contract entered into under section 13b-34. 24
(3) "Personal service agreement" means a written agreement 25
defining the services or end product to be delivered by a personal 26
service contractor to a state agency, excluding any agreement with a 27
personal service contractor that the state accounting manual does not 28
require to be submitted to the Comptroller. 29
(4) "Secretary" means the Secretary of the Office of Policy and 30
Management. 31
(5) "State agency" means a department, board, council, commission, 32
institution or other executive branch agency. 33
Sec. 2. Section 4-214 of the general statutes is repealed and the 34
following is substituted in lieu thereof (Effective July 1, 2023): 35
Each personal service agreement executed on or after July 1, [1994] 36
2023, and having a cost of not more than [twenty] fifty thousand 37
dollars and a term of not more than one year shall be based, when 38
possible, on competitive negotiation or competitive quotations. 39
Sec. 3. Section 4-215 of the general statutes is repealed and the 40
following is substituted in lieu thereof (Effective July 1, 2023): 41
(a) Each personal service agreement executed on or after July 1, 42
[1994] 2023, and having a cost of more than [twenty thousand dollars 43
but not more than] fifty thousand dollars [and a term of not more than 44
one year] shall be based on competitive negotiation or competitive 45
quotations, unless the state agency purchasing the personal services 46
determines that a sole source purchase is required and applies to the 47
secretary for a waiver from such requirement and the secretary grants 48
the waiver. Not later than March 1, 1994, the secretary shall adopt 49 Substitute Bill No. 6867
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guidelines for determining the types of services that may qualify for 50
such waivers. The qualifying services shall include, but not be limited 51
to, (1) services for which the cost to the state of a competitive selection 52
procedure would outweigh the benefits of such procedure, as 53
documented by the state agency, (2) proprietary services, (3) services 54
to be provided by a contractor mandated by the general statutes or a 55
public or special act, and (4) emergency services, including services 56
needed for the protection of life or health. The secretary shall post any 57
approvals of requests for a waiver received under this section on the 58
State Contracting Portal. Not later than January 15, 2020, and annually 59
thereafter, the secretary shall submit a report, in accordance with the 60
provisions of section 11-4a, to the joint standing committees of the 61
General Assembly having cognizance of matters relating to 62
appropriations and the budgets of state agencies and government 63
administration and the State Contracting Standards Board listing any 64
such waiver requests received during the prior year and the 65
justification for the grant or denial of such request. 66
(b) [The] Not less than seven days prior to submitting any 67
application to the secretary for a sole source purchase of audit services, 68
the agency shall [immediately] notify the Auditors of Public Accounts 69
[of any application that the secretary receives for approval of a sole 70
source purchase of audit services] and give the auditors the 71
opportunity to review the application to advise the [secretary as to] 72
agency during such seven-day period whether such services are 73
necessary and, if so, whether such services could be provided by said 74
auditors. 75
Sec. 4. Section 4-216 of the general statutes is repealed and the 76
following is substituted in lieu thereof (Effective July 1, 2023): 77
(a) No state agency may execute a personal service agreement 78
having a cost of more than fifty thousand dollars [or a term of more 79
than one year,] without the approval of the secretary. A state agency 80
may apply for an approval by submitting the following information to 81
the secretary: (1) A description of the services to be purchased and the 82 Substitute Bill No. 6867
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need for such services; (2) an estimate of the cost of the services and 83
the term of the agreement; (3) whether the services are to be on-going; 84
(4) whether the state agency has contracted out for such services 85
during the preceding two years and, if so, the name of the contractor, 86
term of the agreement with such contractor and the amount paid to the 87
contractor; (5) whether any other state agency has the resources to 88
provide the services; (6) whether the agency intends to purchase the 89
services by competitive negotiation and, if not, why; and (7) whether it 90
is possible to purchase the services on a cooperative basis with other 91
state agencies. The secretary shall approve or disapprove an 92
application [within] not later than fifteen business days after receiving 93
it and any necessary supporting information. [, provided if the 94
secretary does not act within such fifteen-day period the application 95
shall be deemed to have been approved. The secretary] In the case of a 96
proposed personal services agreement for audit services, not less than 97
seven days prior to submitting any such application to the secretary, 98
the agency shall [immediately] notify the Auditors of Public Accounts 99
[of any application which the secretary receives for approval] of a 100
proposed personal services agreement for audit services and give said 101
auditors an opportunity to review the application [during such fifteen-102
day period] and advise the [secretary as to] agency during such seven-103
day period whether such audit services are necessary and, if so, could 104
be provided by said auditors. 105
(b) Each personal service agreement having a cost of more than fifty 106
thousand dollars [or a term of more than one year] shall be based on 107
competitive negotiation or competitive quotations, unless the state 108
agency purchasing the personal services applies to the secretary for a 109
waiver from such requirement and the secretary grants the waiver in 110
accordance with the guidelines adopted under section 4-215, as 111
amended by this act. 112
(c) The secretary shall establish an incentive program for nonprofit 113
providers of human services that shall (1) allow providers who 114
otherwise meet contractual requirements to retain any savings realized 115 Substitute Bill No. 6867
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by the providers from the contracted cost for services, and (2) provide 116
that future contracted amounts from the state for the same types of 117
services are not reduced solely to reflect savings achieved in previous 118
contracts by such providers. For purposes of this subsection, 119
"nonprofit providers of human services" includes, but is not limited to, 120
nonprofit providers of services to persons with intellectual, physical or 121
mental disabilities or autism spectrum disorder. Any nonprofit 122
provider of human services allowed to retain savings under the 123
incentive program shall submit a report to the secretary on how excess 124
funds were reinvested to strengthen quality, invest in deferred 125
maintenance and make asset improvements. 126
Sec. 5. Section 4-217 of the general statutes is repealed and the 127
following is substituted in lieu thereof (Effective July 1, 2023): 128
(a) [Not later than March 1, 1994, the] The Secretary of the Office of 129
Policy and Management shall establish standards for state agencies to 130
follow in entering into personal service agreements. The standards 131
shall include, but not be limited to, provisions for: (1) Evaluating the 132
need to use a personal service agreement, (2) developing a request for 133
proposals or any other form of competitive negotiation, (3) advertising 134
for personal service contractors, (4) evaluating submitted proposals, (5) 135
selecting a personal service contractor, including compliance with 136
section 4a-60g, (6) systematically monitoring and evaluating personal 137
service contractor performance, (7) documenting the entire process for 138
selecting and managing personal service contractors and (8) carrying 139
out any other aspect of such process. 140
(b) [Not later than May 1, 1994, each] Each state agency shall: (1) 141
Establish written procedures for implementing the s tandards 142
established by the secretary under subsection (a) of this section, and (2) 143
submit such procedures to the secretary for his approval. If the 144
secretary disapproves an agency's procedures he shall return the 145
procedures to the agency with recommendations for revisions. [On 146
and after July 1, 1994, no] No state agency may execute a personal 147
service agreement unless the secretary has approved procedures 148 Substitute Bill No. 6867
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established by the agency under this section. 149
(c) A request for proposals issued under section 4-214, as amended 150
by this act, 4-215, as amended by this act, or 4-216, as amended by this 151
act, shall include, but not be limited to, an outline of the work to be 152
performed, the required minimum qualifications for the personal 153
service contractor, criteria for review of proposals by the state agency, 154
the format for proposals and the deadline for submitting proposals. 155
Each state agency which prepares a request for proposals shall 156
establish a screening committee to evaluate the proposals submitted in 157
response to the request for proposals. The screening committee shall 158
rank all proposals in accordance with the criteria set forth in the 159
request for proposals and shall submit the names of the top three 160
proposers to the executive head of the agency, who shall select the 161
personal service contractor from among such names. 162
Sec. 6. Section 4-219 of the general statutes is repealed and the 163
following is substituted in lieu thereof (Effective July 1, 2023): 164
No state agency may, without the approval of the secretary, execute 165
(1) an amendment to a personal service agreement, which agreement 166
has an original cost of more than fifty thousand dollars, or (2) an 167
amendment to any other personal service agreement, which 168
amendment (A) has a cost of one hundred per cent or more of the cost 169
of the original agreement, (B) increases the cost of the agreement to 170
more than fifty thousand dollars, [(C) extends the terms of the 171
agreement beyond a one-year period] or [(D)] (C) is the second or 172
subsequent amendment to the agreement. The secretary shall approve 173
or disapprove a proposed amendment [within] not later than fifteen 174
business days after receiving it and any necessary supporting 175
information, provided if the secretary does not act within such fifteen-176
day period the application shall be deemed to have been approved. 177
Sec. 7. Section 4a-50 of the general statutes is repealed and the 178
following is substituted in lieu thereof (Effective July 1, 2023): 179 Substitute Bill No. 6867
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When used in this chapter, unless the context indicates a different 180
meaning: 181
(1) "State agency" includes any officer, department, board, council, 182
commission, institution or other agency of the Executive Department 183
of the state government; 184
(2) "Supplies", "materials" and "equipment" mean any [and all] 185
articles of personal property furnished to or used by any state agency, 186
including all printing, binding, publication of laws, stationery, forms, 187
and reports; 188
(3) "Contractual services" means any [and all] laundry and cleaning 189
service, pest control service, janitorial service, security service, the 190
rental and repair, or maintenance, of equipment, machinery and other 191
state-owned personal property, advertising [and photostating, 192
mimeographing,] and other service arrangements where the services 193
are provided by persons other than state employees; 194
(4) "Competitive bidding" means the submission of prices by 195
persons, firms or corporations competing for a contract to provide 196
supplies, materials, equipment or contractual services, under a 197
procedure in which the contracting authority does not negotiate prices; 198
(5) "Competitive negotiation" means (A) a procedure for contracting 199
for supplies, materials, equipment or contractual services, in which 200
[(A)] proposals are solicited from qualified suppliers by a request for 201
proposals, regardless of the number of responses, and [(B)] changes 202
may be negotiated in proposals and prices after being submitted, or (B) 203
any other open and fair process in which all qualified suppliers have 204
an equal opportunity to be selected to provide supplies, materials, 205
equipment or contractual services; 206
(6) "Bidder" means a person, firm or corporation submitting a 207
competitive bid in response to a solicitation or any other form of 208
competitive negotiation; and 209 Substitute Bill No. 6867
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(7) "Proposer" means a person, firm or corporation submitting a 210
proposal in response to a request for proposals or any other form of 211
competitive negotiation. 212
This act shall take effect as follows and shall amend the following
sections:
Section 1 July 1, 2023 4-212
Sec. 2 July 1, 2023 4-214
Sec. 3 July 1, 2023 4-215
Sec. 4 July 1, 2023 4-216
Sec. 5 July 1, 2023 4-217
Sec. 6 July 1, 2023 4-219
Sec. 7 July 1, 2023 4a-50
Statement of Legislative Commissioners:
In Section 5(b), the dates were bracketed for consistency.
GAE Joint Favorable Subst. -LCO